I know Tom Basso uses it in his trend following strategies. I have been looking into, but have not use them in a strategy yet. Looking to do some back testing 1st. Have you performed any back testing with KC bands?

Some signals from Keltner Channels work others not. Only simulation on historical data will show what does your strategy worth. I’m not a fan of telling something definite about success of patterns of technical indicators but Keltner channels did help me to increase winning ratio in my trading with Hotforex because I use it through autochartist. Learn if your broker offers that.

ATR, RSI and variations of those momentum indicators. Basically the reasoning behind choosing indicators is simple: understand what is the basic principle of your trading system (following trend, hunting momentum, playing long-term relying on price fundamentals) and then choose indicators which can serve as a confirmation of your trading principle.

Yeah, it can be the case but you know making trades based on “naked eye” analysis, intuitive decisions create impression that your trading is dumb. We forced to think that we need to use some additional information because it makes us confident.

However if you take an intuitive trader and a trader that uses bunch of indicators or generates signals with some sophisticated trading system (without clear market edge like speed of execution, insider information) you can’t prove that second trader is better. They both have equal chances that their trading performance is purely random.